Sunday, January 15, 2012


This column is dedicated to a good friend, neighbor, and fellow investor, who passed away late last week from ALS at 81. Ralph Clark was a student of investing, at GGU and briefly with the San Francisco Bay Area Options Group. Before passing, he asked me to dispose of nearly 50 quality investment books which I intend to do at the upcoming Options monthly meeting this Saturday morning at Fort Mason, where I and other speakers will explain our experiences with my DITM investment strategy.
Last week's Sentiment numbers saw some toppy, overbought readings, creating a caution signal: my Volume ratio - NASD/NYSE is approaching a high (speculative) reading. Although only testing for a short time (2011), these levels were at previous tops in April 6, May 2, and July 22. My cum. Volume of Adv./Dec. is also toppy, going back to April. Commitment of Traders show Large Specs on the S&P going negative vs. positive for Small Specs. Most dramatic is the AAII and Inv.Intell. Bull/Bear ratios. Numbers appear below:

1/13/2012 1/6/2012
Indices: DJIA  ..12422 ..12359
  NAZ  ..2710 ..2674

SPX  1289 1277
NASD/NYSE WklyVolume (Bshs) 3.9/8.7 3.2/6.9
nasd/nyse Specul.Ratio hi=bullish 2.23 2.16
Sentiment: put/call-CBOE  59 63
Barron's VIX>50-alltmlow=8.8 20.9 20.6

Advance/Dec-NYSE 2161/988 2213/947

Weekly Net: 1173 1266

     Cumulative: 127706 126533
Weekly  NYSE hi/low 277/50 305/27
New Hi's/Low's Nasdaq h/l 153/89 118/81
McClellan  Oscillator 26 29
McClellan Sum .+750/-1000 618 395
Newsletter Inv.Intel -Bull:tues 51.1 49.5
Surveys Bear:-5yrs 29.8 30.5

AAII  -Bull :wed. 49.1 48.9

Bear  17.2 17.2
COT:Change w/w large/small (net)k 21/(9) 12/5.
CEOinsider selling 20:1 30:1
BalticDryIndex GlobalEcon 1105 1426
3-box rev Bullish%-  73 68
US equity -ICI Fund Flows 1 wk lag (7B)
MMF flows Change in $B 11B (1.9B)
MargDebt- top (300M) monthly OCT.

ETF:Eqty/Int'l/Bond  million$$ OCT.

2-yr Tsy Yield: Inflation 0.23% 0.27%
Euro futures 1 yr.offset-CommHedg 4.96M 5.13M


With record numbers of dollars coming out of Money Market Funds, mostly into the crowded trade of short term bonds, anyone who has a minimal knowledge of covered call options and/or an interest in hedging stock market exposure might want to check out: for an alternative strategy that is low-risk as well as highly rewarding. For those of you wanting more details and actual trading results, a new book is available for $14.95 at Zero (IN)Tolerance

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